It forms part of the company’s Destination Zero programme to develop driverless and electric cars.
The focus is on achieving a future of zero emissions, zero accidents and zero congestion.
JLR chief executive Sir Ralf Speth said: "Jaguar Land Rover understands the trends shaping modern societies. Project Vector shows Jaguar Land Rover as a leader in innovation to make our societies safer and healthier, and the environment cleaner.
"Through this project, we are collaborating with the brightest minds in academia, supply chain and digital services, to create connected, integrated mobility systems – the fundamental building blocks for Destination Zero.
“Project Vector is precisely the brave and innovative leap forward needed to deliver on our mission.”
The compact, flexible vehicle concept measures just four metres in length and is designed for the city, packaging all its battery and drivetrain components into a flat floor, to allow a variety of uses.
The cabin space allows seating configurations for private, or shared use and even the opportunity for commercial applications, such as last mile deliveries.
JLR's new electric drivetrains will be assembled at the engine manufacturing centre at the i54 to the north of Wolverhampton.
Project Vector was developed at the National Automotive Innovation Centre, Coventry, working with academic and external partners.
Project director Dr Tim Leverton said: "The megatrends of urbanisation and digitalisation make connected urban mobility systems necessary and inevitable. Shared and private vehicles will share spaces with and be connected to public transit networks, so you can travel on demand and autonomously. That is a complex task, best achieved by working together with partners across the spectrum of vehicles, infrastructure and the digital world.
"With the technology and engineering power of Jaguar Land Rover, we can provide a unique opportunity for innovators to develop highly-functional urban mobility services, seamlessly integrated into everyday life.
"Future urban travel will be a composite of owned and shared vehicles, access to ride hailing and on-demand services as well as public transport. Our vision shows the vehicle as a flexible part of the urban mobility network that can be adapted for different purposes.”
The intention is to collaborate with Coventry City Council and the West Midlands Combined Authority to plan a mobility service from late 2021, as a living laboratory for future mobility on the streets of Coventry.